New Credit Karma Tax® Study Reveals Americans Could Owe $430 Billion Less in Federal Taxes This Year

Credit Karma Tax, offering a premium tax product that never charges
members to file, today announced the results of a new study showing
Americans could owe $430 billion less in federal taxes this season as a
result of the Tax Cuts and Jobs Act.

The analysis used self-reported annual household income and status
(single or married) entered into Credit
Karma's Tax Reform Impact Tool to determine that 94 percent of
members who inputted their information may see their 2018 federal tax
obligation go down. Further, the data shows Credit Karma members who
inputted their data with high credit scores or high incomes could save
the most.

Credit Karma analyzed the data from more than one million of its members
to determine that an average user could see a decrease in federal tax
liability of $1,821, compared to what it would have been absent tax
reform. Credit Karma members with high incomes ($510,301 or higher)
could see an average savings of $7,685. Those with incomes between
$9,701 and $25,000 could save roughly $974 on average. Separately, the
data also indicates that members with high credit scores (760 or higher
on a scale of 300 to 850) could see average savings of $2,816, that's
more than double the amount those with lower credit scores might
receive. Less than one percent of members could expect to see an
increase in their federal tax liability this season. That group could
owe $2,000 more on average.

"With tax reform in full effect this tax season, the question on most
people's minds is: will I owe money this year?" said Jagjit Chawla, GM
of Credit Karma Tax. "And, while we don't know exactly how things will
shake out, we hope this study will shed some light on how tax reform
could impact Americans' overall."

The full report, including insights, analysis, raw data and methodology,
can be found here: https://www.creditkarma.com/insights/i/americans-could-save-430-billion-federal-taxes-this-year.

Taxpayers interested in learning about how tax reform could impact their
federal tax liability can use the Tax Reform Impact Tool, available to
all Credit Karma members in the U.S. By entering a few bits of
information, members can quickly see how different aspects of tax reform
could impact their federal tax liability and other ways tax reform could
affect their 2018 federal taxes. For more information visit www.creditkarma.com/tax/hub.

About Credit Karma

Founded in 2007 by Kenneth Lin, Nichole Mustard and Ryan Graciano,
Credit Karma is a personal finance technology company with more than 85
million members in the United States and Canada, including almost half
of all U.S. millennials. The company offers a suite of products for
members to monitor and improve credit health and provides identity
monitoring and auto insurance estimates. Credit Karma leverages advanced
data modeling to analyze and identify financial products that are a good
fit for its members and has facilitated more than $40 billion in credit
lines across financial products like credit cards, personal loans,
mortgage refinancing, automotive financing and student loan refinancing.

Learn more about how Credit Karma members are making financial progress
on Facebook,
Twitter,
and YouTube.

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